Caveat Emptor

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Caveat Emptor is a latin phrase which means "let the buyer beware". The phrase suggests that in a commercial transaction it is the responsibility of the buyer to verify the quality of the assets that he or she is purchasing. In property law, the term is used to suggest that the buyer would not be compensated by the seller for defects in the property after the transaction has closed. In the US, caveat emptor applies to all real-estate transactions except for sale of new residential units by a builder.

The opposite of Caveat Emptor is Caveat Venditor, which means "let the seller beware".

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